Many people dream of a comfortable retirement filled with travel and pursuing passions, often requiring a significant financial buffer. However, lingering debt and limited retirement income can make this dream seem out of reach. This case study explores how a couple creatively leveraged a mortgage in Later Life to unlock the potential of their property and secure a facility of £138,750 for their retirement goals.
Our clients, with a spacious annexe attached to their rural home, envisioned transforming it into a rental property for additional income. They required a Later Life mortgage to clear existing debt and finance necessary renovations.
Identifying and Overcoming the Challenges
After previously applying for a Lifetime mortgage with another adviser, they had encountered obstacles and ultimately rejection due to their property location and features. Nestled in a charming rural area, it lacked readily available comparable data for an accurate valuation. Additionally, their sizeable annexe with a separate entrance raised concerns with lenders typically hesitant about non-familial rentals. Discouraged but not defeated, they sought our expertise.
We took a meticulous approach to the situation to ensure we could avoid later disappointment. By delving deeper into their property’s unique features, we identified specific details that were pertinent to lender criteria. We carefully presented this detailed evaluation directly to the chosen lender before submitting the application, ensuring a smoother valuation process and avoiding potential delays.
The Final Result
Our meticulous case presentation and strong lender relationships paid off. We successfully secured our clients a Lifetime mortgage on their £750,000 property. This solution provided them with an initial lump sum of £100,000 to address their immediate needs, along with a flexible £38,750 drawdown reserve. This reserve allows them to access additional funds for future needs without accruing interest until the funds are required.
Stephen Savill, Later Life Mortgage Adviser at Henry Dannell, commented:
“This case was especially satisfying in light of our client’s previous disappointment. As they were relatively young for a Lifetime mortgage, we discussed the alternative solutions extensively before our recommendation to ensure it was appropriate and the clients were confident in their decision. We then used our connections and expertise to overcome any obstacles in securing their required level of funding with the flexibility they required.”
Do you require a solution to release additional funds in later life?
Our experienced team can help you achieve your financial goals. For more information, read our article on ‘How You Can Achieve the Dream Retirement with a Later Life Mortgage’ or contact our mortgage specialists today to discuss your options.
Please note: Later Life mortgage options include Retirement Interest Only and Lifetime mortgages. To understand the features and risks, always obtain a personalised illustration.
